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Ethereum whale sells $408 million, ETH price rebounds above $2,500

Ethereum whale sells $408 million, ETH price rebounds above $2,500

CointurkCointurk2026/09/04 09:03
By:Cointurk

Ethereum saw a notable price recovery as large holders shifted their positions and institutional investors kept extending their exposure, despite a significant whale liquidation. ETH traded near $2,513, gaining about 4.3% in the last 24 hours, with its market capitalization holding above $306 billion and market dominance climbing to over 11%.

Whale offloads 167,855 ETH in $408 million exit

Blockchain analytics firm Lookonchain reported that a prominent Ethereum whale fully exited its position by selling all 167,855 ETH over a five-day span. This liquidation totaled approximately $408 million, making it one of the largest single-entity exits from the ecosystem in recent months.

The series of transactions began after the wallet received a substantial ETH transfer in early September. The whale then distributed hundreds of millions worth of ETH across several centralized exchanges before completing the full sale.

Despite the large-scale liquidation, ETH rebounded from previous lows near $2,400 and quickly returned to levels above $2,500 as overall crypto market sentiment improved.

Market analysts noted that the impact of the whale’s exit was absorbed by other market participants, as broader crypto prices stabilized and later strengthened. Some traders believe increased institutional interest may have helped limit downside pressure.

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Institutional accumulation led by Invesco ETF clients

According to blockchain data provider Arkham, clients of the Invesco Ethereum ETF have not recorded net ETH selling since March 19, 2026, marking nearly six months of continuous holding. During this period, these clients added around $167 million worth of ETH to their portfolios.

This accumulation trend underscores divergent strategies among large players, with institutional investors maintaining or expanding their exposure even as some individual holders exit the market.

Invesco’s clients reportedly kept their ETH in custody throughout the period, highlighting sustained confidence in the asset despite high volatility and significant whale activity.

Invesco, a global investment management company, is among the leading issuers of exchange-traded products, with its ETF offering attracting sizable interest from both retail and institutional participants.

Suspected Notional Finance exploit under investigation

Blockchain security firm PeckShield, referencing research by Specter, flagged a suspected exploit affecting an escrow or custodial contract related to Notional Finance. The incident reportedly resulted in the unauthorized transfer of approximately $1.7 million in stablecoins DAI and USDC.

Following the exploit, the attacker is believed to have converted the funds into 689.2 ETH before channeling them through Tornado Cash, a privacy protocol frequently used to obfuscate transaction histories on the Ethereum network.

Notional Finance, an Ethereum-based decentralized lending platform, has not confirmed all the details surrounding the event. The situation remains under scrutiny by security researchers and blockchain monitoring groups.

Mini dictionary: Notional Finance, a protocol enabling fixed-rate crypto lending and borrowing on Ethereum, uses smart contracts to facilitate on-chain debt markets without intermediaries.

Mixed flows from Abraxas Capital and derivatives trading

Lookonchain further reported that Abraxas Capital acquired 16,554 ETH—valued at about $39.8 million—over roughly 12 hours. The multi-strategy firm maintained a complex position, as other wallets associated with Abraxas Capital reportedly held 120,178 ETH worth $291.4 million in short positions on Hyperliquid, a decentralized derivatives exchange.

This structure suggests a hedged trading approach, with large spot purchases balanced against significant short exposure in derivatives markets.

Mini dictionary: Hyperliquid is a decentralized derivatives protocol allowing users to trade perpetual contracts and futures with leverage, while maintaining on-chain transparency and settlement.

As different market participants executed varying strategies, Ethereum’s price remained resilient above $2,500, with both institutional and retail flows influencing short-term volatility.

Holder/Institution ETH Movement Value (approx.) Positioning
Ethereum Whale Sold 167,855 ETH $408 million Full exit
Invesco ETF clients Accumulated ETH since March 19, 2026 $167 million Net accumulation
Abraxas Capital Bought 16,554 ETH; held major shorts $39.8 million spot; $291.4 million short Hedged
Notional Finance (Exploit) Lost 689.2 ETH (converted from DAI/USDC) $1.7 million Security incident
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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